RE:In the short run with low gold price buying DGC hurts KL butI expect DGC to open near $27.50
For KL we will probably see a drop more than the current premarket drop
will probably go below $46 US maybe below $45 but then recover most by the end of the week.
I agree that this deal will be great for KL if POG increases. Luckily that just might happen in Dec, but if not then it will probably take a few months maybe a quarter or two to get used to. And we will suffer with a lower share price than otherwise.
It adds lots of reserves which KL needs for a higher valuationdown the road but if POG drops a lot this could be really bad, so has that risk. Still DGC has been lowering their AISC so there is a bigger margin of error now than last year.
I wonder if this means Fosterville drilling results are not what was hoped for though that is more a longer term possibility they may be buying DGC now because DGC might ask a higher price if thy knew KL was more desperate for reserves.